Tim Knotnerus | Agomab
Last year, Agomab Therapeutics secured the largest capital round of 2023 in our country and the largest capital round ever in the Belgian private biotech sector. With the transaction, the Gent-based company raised 100 million dollars. Barely six years after its inception, the company’s total now stands at 240 million dollars. This was achieved through three capital rounds, with increasingly larger players coming on board. CEO Tim Knotnerus leads the company with around 50 employees, focusing on the development of drugs to prevent organ damage from fibrosis.
Last year, Agomab Therapeutics secured the largest capital round of 2023 in our country and the largest capital round ever in the Belgian private biotech sector. With the transaction, the Gent-based company raised 100 million dollars. Barely six years after its inception, the company’s total now stands at 240 million dollars. This was achieved through three capital rounds, with increasingly larger players coming on board. CEO Tim Knotnerus leads the company with around 50 employees, focusing on the development of drugs to prevent organ damage from fibrosis.
In the fall of 2023, Agomab successfully completed a capital increase of 100 million dollars. How did that operation go? Is financing a continuous concern?
Tim Knotnerus: “We invest a lot of time and energy in building relationships with investors and pharmaceutical companies. Despite having just completed a major financing round, we were present again this year at the JP Morgan Healthcare Conference, the annual highlight for our sector. It’s a unique opportunity to engage with a variety of international investors and the largest pharmaceutical companies. Experience teaches us that it can take months, sometimes even years, to build a relationship of trust with them. Especially in the biotech sector, it’s important to be proactive. You have to strike while the iron is hot. The last capital round is a good example, as we didn’t immediately need the additional resources. However, it opened up new opportunities, and when that happens, you have to seize them. As a result, we now have financing secured for the early clinical phase of not just one, but three different projects. This diversification has a positive impact on our risk profile.”
Last year, valuations in the venture capital market were under pressure. Did you notice any effects?
Tim Knotnerus: “Biotech is an industry of its own with different rules. Multiples don’t make sense for us because most biotech companies generate no revenue or profit. Valuation is based on pipeline progress and is primarily a matter of supply and demand.”
It’s noticeable that with each capital round, new and larger investors have come on board. How is the relationship among them?
Tim Knotnerus: “Over the years, a healthy playing field has developed with an interesting diversity of shareholders. The entry of new, often more renowned investors such as Fidelity from America and EQT from Europe also benefits existing shareholders. However, the most important thing is that all parties pursue a long-term vision. In Europe, this was less evident before because smaller funds sometimes aimed for a quicker exit.”
In addition to some purely financial players, Agomab’s shareholders also include pharmaceutical giants like Boehringer Ingelheim and Pfizer. Do such investors have different expectations?
Tim Knotnerus: “Pharmaceutical shareholders often have not only financial but also strategic interests. However, in terms of due diligence or general support, I see little difference. Even purely financial investors conduct very thorough scientific research before investing. The only difference may be that pharmaceutical companies often show less interest in a seat on the board of directors.”
Nearly three years ago, you acquired the Spanish company Origo. What was the rationale behind that acquisition?
Tim Knotnerus: “The acquisition of Origo was based on three strategic pillars. Firstly, the company’s pipeline was promising. By 2024, their products have become the leaders of our pipeline. So, it was certainly a valuable acquisition. Secondly, we also brought on board a lot of new people and know-how.”
Was the Series B round at the beginning of 2021 in function of that acquisition?
Tim Knotnerus: “At the time of our second capital round, Origo was not yet on our radar, but that round made the opportunity possible. It characterises our strategy where we opportunistically bring in additional resources and interesting partners. By raising money early from the right investors, we increase optionality and thus the chance of success. Even with our most recent capital increase, we have taken a step forward. It’s not certain whether we will apply for a listing on Nasdaq, but by bringing in new shareholders, we have made that route possible.”
Last year, the Belgian Venture Capital & Private Equity Association (BVA) named Agomab ‘Venture Company of the Year’. How important is this award for the company?
Tim Knotnerus: “For the financing of our type of company, venture capital equity is simply indispensable. I consider this award as recognition for this valuable asset class. In addition, this trophy makes our employees proud and also serves as a plus in recruiting new talent.”